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Critical Factors Successful Property Developers Should Know

By
Education & Training with Property Investment Wise

 

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Property development is no doubt the most growing industries in the world. This is so because there is growing population which need a good habitation which is convenient. In these days, property development does not only entail buying a block of land and building up something, but also renovating and re-designing of already existing properties. For any property developer to be successful in this ever competitive field, he/she must have a know how about some key investment factors. Below are five tips from Renew Solutions if your project development has to be successful;

 

1.Choose a good site where to develop your project.

 

Buying a good and affordable site will not only give u a good value for your money, but also good returns as profits from your development. Also, good negotiation with the contractor to ensure that contract clause is weighted in your favor. It is also highly recommended that in contract, one should take a due diligence period so as to complete adequate site research development feasibility.

 

 

2.Structure your finances properly.

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Determining how to fund your project is also very vital so as to determine the people who are directly linked with the project development. Money can be acquired through various ways such as borrowing or using a mortgage brokers who can finance the development project. However, when choosing a broker, ensure that the broker you choose has a comprehensive understanding and good reputation of funding development projects.

 

3.Look for the best designer.

 

A good designer, with the ability to custom design assets, will help you come up with the best design for your assets which in turn will attract more potential customers. A good designer will not only custom design assets but also asset redesign in cases where there are existing properties. Make sure to choose an architect or designer who is best suited to your project. It is recommended to use a building designer or architect rather than approaching a builder directly, this is because going directly to a builder will mean that a builder owns the copyright to the plans and if for any reason one does not want to use that company, planning process will have to start a flesh.

 

4.Look for the best builder/ worker.

 

When preparing for building plans, approach builders who are proven to develop similar projects as yours or who can construct a perfect structure. It is a wise decision to compare builders price and with the cheapest quote, quality and service reliability. This can be done by visiting sites under construction to learn more about the company whether the builders pay their invoices regularly. Thoroughly review building contracts and any other special conditions the builder may have.

 

5.Determine the market to sell or lease the completed property.

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Make the right timing when selling a completed project to determine when the market is strong for great rewards. Though the property owner may decide to sell the property, you can decide to hold the property as you will have to make an immediate profit through rents and rates.

 

Conclusion

Property development is one of the most popular industry which accrue the greatest profit margins.

Developing properties, requires huge finances. However, for young developer’s risks may be high if the projects are not properly executed.

 

 

 

Posted by

Joe McCord works at REAA.

Richard L. Sanderson
Richard L. Sanderson Consulting - Kalama, WA
helping improve local property tax systems

Joe McCord - I assume that your tip 1 (choosing a good site) includes a feasibility study for the type of development planned and all of the associated background for doing business and developing real estate in that location (whether another county, state or country).  Preliminary work would probably include collaboration with local professionals (appraiser, architect, attorney, brokers, etc.) as well.

Oct 08, 2015 06:51 PM